Enel's approach and KPIs for circular targets
Below the main benefits of this KPI:
- Relevance: the KPI is able to measure the circularity of the company considering all core business activities and all the resource used. Furthermore, the focus of the KPI is to measure the main objective of circular business models i.e. the decoupling of resource consumption from value generation.
- Transparency and objectivity: the KPI uses public certified data (EBITDA) and objective data that can be certified and verified, therefore no hidden assumptions on subjective information are present
- Communicability: this KPI, based on economic/physical data, is easy to understand for subjects outside the company
- Comparability: the KPI can be applied to Companies of any sector (although the comparison has to be done only within the same sector to be meaningful)
The new KPI and the 2030 target were announced during the World Economic Forum 2023 in Davos during a panel organized as part of the ‘Corporate Circular Target-Setting’ initiative, implemented by the ‘Platform for Accelerating the Circular Economy’ (PACE), a global platform for public-private collaboration that was set up during the World Economic Forum to accelerate the transition towards a circular economy model, involving roughly 100 companies, public entities and associations.
By doing this, Enel becomes the world’s first company to take a pledge on doubling a circularity indicator that include economic and resource perspective.